Profits at China’s industrial firms surged 15.2% yoy to CNY 1.02 trillion in the first two months of 2026, a strong rebound from a 0.6% gain in 2025. The latest result highlighted momentum in China’s economic recovery, even as the war in the Middle East weighs on world growth prospects. State-owned enterprises returned to growth, with profits rising 5.3% to CNY 366.6 billion after a 3.9% drop in 2025. Private firms surged 37.2% to CNY 284.4 billion, rebounding from flat results last year. Joint-stock enterprises climbed 22.1% to CNY 803.3 billion, reversing a slight decline. By sector, manufacturing led gains with an 18.9% jump to CNY 732.1 billion, while mining profits rose 9.9% to CNY 155.6 billion. Utilities, including electricity, heat, gas, and water supply, added 3.7% to CNY 136.8 billion. Among industries, computer, communication, and electronic equipment manufacturing led with 200% profit growth, while non-ferrous metal smelting and rolling soared 150%.

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